Company Coverage
Mapletree Pan Asia Commercial Trust (MPACT SP): 1QFY27: Green Shoots In Hong Kong And Japan
BUY (Maintained)
Current price:
Target price:
Upside:
S$1.36
S$1.75
+28.7%
Analyst
Highlights
- NPI from VivoCity grew 8.9% yoy in 1QFY27, supported by a positive rental reversion of 13.5% and high occupancy of 99.7%. Several leases for new IT tenants are progressively commencing at MBC in 2QFY27 and 3QFY27.
- Festival Walk recorded the second consecutive quarter of healthy tenant sales growth at 4% yoy with sustained spending on luxury goods. Strong demand within central Tokyo has spilled over to the Makuhari sub-market. MPACT has initiated discussions with several potential new tenants.
- Maintain BUY with a target price of S$1.75 due to resiliency from Singapore and an attractive FY27 DPU yield of 5.9%.
Analysis
- Mapletree Pan Asia Commercial Trust (MPACT) reported DPU of 1.96 S cents for 1QFY27 (-2.5% yoy), which is in line with our expectation.
- Singapore: VivoCity leading the charge. VivoCity delivered an NPI growth of 8.9% yoy and a positive rental reversion of 13.5% in 1QFY27, supported by contribution from the completed Basement 2 AEI. Tenant sales and shopper traffic increased 4.9% and 5.0% yoy, respectively, while committed occupancy remained near full at 99.7%. Management expects VivoCity to remain a key earnings driver given its dominant market position and ability to introduce new concepts and experiential retail offerings.
- MBC secured several IT tenants. Occupancy at Mapletree Business City (MBC) eased 2.1ppt qoq to 94.3% due to transitional leasing downtime,
although management highlighted that several leases for new IT tenants are progressively commencing in 2QFY27 and 3QFY27. A sizeable committed lease for 100,000sf is scheduled to commence in Nov 26. Singapore NPI grew 1.0% yoy, driven primarily by VivoCity. Singapore now contributes 68% of portfolio NPI, reinforcing its role as MPACT's core earnings anchor.
Highlights
- NPI from VivoCity grew 8.9% yoy in 1QFY27, supported by a positive rental reversion of 13.5% and high occupancy of 99.7%. Several leases for new IT tenants are progressively commencing at MBC in 2QFY27 and 3QFY27.
- Festival Walk recorded the second consecutive quarter of healthy tenant sales growth at 4% yoy with sustained spending on luxury goods. Strong demand within central Tokyo has spilled over to the Makuhari sub-market. MPACT has initiated discussions with several potential new tenants.
- Maintain BUY with a target price of S$1.75 due to resiliency from Singapore and an attractive FY27 DPU yield of 5.9%.
Analysis
- Mapletree Pan Asia Commercial Trust (MPACT) reported DPU of 1.96 S cents for 1QFY27 (-2.5% yoy), which is in line with our expectation.
- Singapore: VivoCity leading the charge. VivoCity delivered an NPI growth of 8.9% yoy and a positive rental reversion of 13.5% in 1QFY27, supported by contribution from the completed Basement 2 AEI. Tenant sales and shopper traffic increased 4.9% and 5.0% yoy, respectively, while committed occupancy remained near full at 99.7%. Management expects VivoCity to remain a key earnings driver given its dominant market position and ability to introduce new concepts and experiential retail offerings.
- MBC secured several IT tenants. Occupancy at Mapletree Business City (MBC) eased 2.1ppt qoq to 94.3% due to transitional leasing downtime,
although management highlighted that several leases for new IT tenants are progressively commencing in 2QFY27 and 3QFY27. A sizeable committed lease for 100,000sf is scheduled to commence in Nov 26. Singapore NPI grew 1.0% yoy, driven primarily by VivoCity. Singapore now contributes 68% of portfolio NPI, reinforcing its role as MPACT's core earnings anchor.
BUY (Maintained)
Current price:
Target price:
Upside:
S$1.36
S$1.75
+28.7%
Analyst
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